Lundin Mining completes sale of U.S. subsidiary

Executive Summary

• Lundin Mining Corp. has completed the sale of its Eagle Mine and Humboldt Mill to Talon Metals Corp.
• As consideration, Lundin Mining received 275,152,232 common shares of Talon, bringing its total holding to approximately 19.86% of Talon’s issued and outstanding shares.
• The transaction positions Lundin Mining as a pure-play copper company and includes an investor rights agreement granting director nomination rights and a 24-month lockup on the Talon shares.

Key Details

• Transaction Completion: Sale of subsidiary Lundin Mining U.S. Ltd. (holding Eagle Mine and Humboldt Mill) to Talon Metals Corp. was completed.
• Consideration Structure: Lundin Mining received 275,152,232 common shares of Talon.
• Valuation: The implied valuation of the share consideration is approximately $127.0 million (U.S.), based on the five-day volume-weighted average share price of Talon as of Jan. 8, 2026.
• Shareholding Impact:
  • Prior to transaction: Lundin held 18,502,906 shares (~1.57% non-diluted).
  • Post-transaction: Lundin holds 293,655,138 shares total (~19.86% of issued and outstanding shares).
  • New shares received represent ~18.61% of Talon's non-diluted shares.
• Regulatory/Strategic Agreements:
  • Investor Rights Agreement: Lundin is entitled to certain director nomination rights and anti-dilution rights.
  • Lockup Agreement: Restricts acquisition, sale, and disposition of Talon shares for up to 24 months.
  • Purpose: The acquisition was for investment purposes; Lundin may acquire additional securities, dispose of some/all, or hold.
• Strategic Shift: Lundin Mining is now positioned as a pure-play copper company with a growth strategy to become a global top 10 copper producer, leveraging existing operations and the Vicuna district project (50% interest).

Notable Quotes

• Jack Lundin, President and CEO, Lundin Mining: "We are pleased to see this transaction successfully completed and are confident that the alignment of these assets and the complementary skill sets of the teams will lead to sustained value generation in the region for all stakeholders involved... With this milestone completed, Lundin Mining is positioned as pure-play copper company with our existing operations along with a clear growth strategy to become a global top 10 copper producer through the development of the Vicuna district."
• Darby Stacey, CEO, Talon: "I want to thank Lundin Mining for the leadership, support and guidance over the past 13 years that has enabled the Eagle team to confidently take on the next challenge. Together with the established and successful Talon Metals team, I am genuinely excited about the future and what we will accomplish."